Indonesia’s transition to B40 seen shifting palm oil demand for food

In Indonesia, Bloomberg Technoz reports the Indonesian Biofuel Producers Association (Aprobi) said that the high demand for crude palm oil (CPO) as raw material for biodiesel will shift the need for food, especially after B40 is tested in 2024.

However, Aprobi Chairman Paulus Tjakrawan said that entrepreneurs are not worried that the high demand for biodiesel will erode the supply of CPO in the country. 

“We estimate that there will be enough, both demand and supply, as long as conditions are normal. “If there are obstacles, of course we will all try to overcome them,” he said when contacted, Thursday (21/12/2023).

Paulus estimates that in the future the use of biodiesel in the domestic market will also erode the performance of CPO exports, and replace the dominance of demand from the food sector.

“It is possible that what will happen will reduce the amount of our exports. “As we know, the current amount of domestic use is around 40% of Indonesian CPO and the other 60% is exported.”